The buzz around town is about Michele Bullock being named new governor of the Reserve Bank of Australia.
Ms Bullock will take the reins from Philip Lowe later this year, becoming the first woman to lead the central bank.
Prime Minister Anthony Albanese said Bullock, who has been the RBA deputy governor since April 2022 and worked for the RBA since 1985, was an “outstanding economist and leader with a deep understanding of the RBA’s role and operations”.
The RBA board has spent time discussing the review’s recommendations, particularly those relating to monetary policy decision-making and communication. It said:
“From 2024, the board will meet eight times a year, rather than 11 times as is currently the case.
“Four of the meetings will be on the first Tuesday of February, May, August and November. The other four meetings will be held midway between these meetings.
“The exact dates for 2024 will be published soon and the dates for future years will be published well in advance.”
The full list of other changes can be found on the RBA website.
It’s no secret that the Australian housing market has faced its fair share of challenges over the past couple of years.
From the economic fallout of the COVID pandemic to 11 interest rate rises, the lowest level of consumer confidence in decades, and tightening lending restrictions, our property markets have faced considerable headwinds.
Despite the pessimistic predictions, the Australian property markets have defied expectations and shown remarkable resilience.
While the cash rate can be a short-term indicator of price growth, factors such as population growth and the supply of dwellings to the market have had a more significant impact on dwelling values.
Until supply responds adequately to demand, the current upturn in the market is expected to continue.
Unbelievably, even with 12 interest rate increases from the Reserve Bank of Australia in the past year, which have seen official rates rise by four per cent, property prices have not only stabilised but are now on the rise.
I have heard many people saying they were waiting for this big drop in price and that simply hasn’t happened.
My advice to buyers is if you see something you like and it ticks all boxes, and you get a good deal, then buy it.
You might not see this big price drop that you may have been thinking is going to come, especially with the prices staying as strong as they are.
The majority of mortgage debt is on variable terms, according to RBA data, mitigating the potential negative impact of further rate hikes.
Additionally, many homeowners have been overpaying on their mortgages during the low interest rate cycle, while others have already refinanced, creating a buffer against future rate increases.
Once interest rates peak and inflation subsides, which could be on the horizon, consumer confidence is expected to return, resetting the market and initiating a new property cycle.
With a growing population and various factors influencing housing demand and supply, the market is poised to remain resilient.
We shall also watch this space and see what the new RBA leader has in store along with her board as of September.
